Oxides of nitrogen are well-known environmental pollutants. They have been the subjects of extensive regulations including the Clean Air Act. Nitrogen oxides are collectively referred to as NOx, which is the total amount of nitric oxide (NO) and nitrogen dioxide (NO2). Nitrogen dioxide is the more harmful of the two, associated with many forms of respiratory health effects. Upon inhalation, NO2 can inhibit lung function by increasing airway resistance at low concentration over short periods of time. It can also increase susceptibility to bacterial and viral pulmonary infections. Certain sub-populations are at high risk to NOx exposure, either because of susceptibility at lower concentrations or greater impact of effects. These groups include asthmatics, COPD, children, and the elderly. This program addresses NOx emissions from combustion processes at high temperatures, since at temperature nitrogen and oxygen generate NOx. Electrical power generation facilities are major NOx sources. Product concept (PC) uses existing burner technology plus nitrogen enriched air (NEA) to reduce NOx emissions. Modeling work projects 300-fold NOx emissions reductive using PC. Program focus will be on pilot demonstration of NOx reduction process. Coal fired plants require 86% NEA; gas burners require 83% NEA. Preliminary estimates suggest PC is less expensive than existing selective catalytic reduction (SCR) systems. Program has broad value for many commercial furnaces. Phase I will demonstrate process feasibility on small gas furnaces systems. Gas turbines are seen as major electrical power consumption growth area. Results will be compared to existing SCR NOx cleanup. Compact Membrane Systems (CMS) has established key industrial and national laboratory relationships. These relationships should help CMS in this SBIR plus subsequent commercialization. [unreadable] [unreadable]